ICYMI: News Journal: Coons bill would end tax hit for forgiven college loans

WASHINGTON – In case you missed it, below is an article from The News Journal on U.S. Senator Chris Coons’ (D-Del.) bill to eliminate a tax penalty levied on student loans forgiven for families after the death of their child and Americans who develop permanent disabilities.

News Journal: Coons bill would end tax hit for forgiven college loans

By Saranac Hale Spencer

Thousands of families who suffer the death of a child each year also end up facing a huge tax bill if their child’s student loans have been forgiven.

Those loans, both federal and private, are often cleared if the student who has borrowed them dies or becomes disabled. But the Internal Revenue Service treats the amount that has been excused as income for the family and taxes it accordingly.

That can add up to tens of thousands of dollars owed to the IRS.

Sen. Chris Coons has proposed a bill that would end the practice.

Since the idea of forgiving those loans is to ease the burden on grieving families, Coons said, “This is, in my view, a common sense bill.

While his office was researching the issue before putting the bill together, one aide recognized a familiar situation. Eric Wall, a legislative correspondent in Coons’ office, had a brother who died just months after graduating from college in 2009.

“I realized that my family might be in a similar situation,” Wall said, since his brother had taken out loans to go to Mount St. Mary’s University in Northern Maryland and his parents had co-signed on those loans.

His brother, Andrew Wall, graduated in May of 2009 and was diagnosed with a brain tumor two months later. He died in November of that year, four days after his 23rd birthday.

“It’s one of those illnesses that comes out of the blue,” Wall said, and the whole family – all three brothers and their parents – dealt with it differently. “It was really devastating for my folks,” he said.

As Eric Wall was looking into the issue of taxing forgiven student loans at work earlier this year, he asked his parents what had happened to his brother’s student loans.

For a while afterward, they had continued to pay them as usual, he said. Then, they found out that they could have the loans forgiven, which wasn’t made clear to them.

“My brother was clearly eligible, but, they didn’t know it,” he said, touching on another issue related to the bill. Many people who are dealing with the death of a family member or disability of their own don’t even know that they are eligible to clear student loans.

The federal Department of Education announced earlier this year that it would be working with the Social Security Administration to identify student-loan borrowers who are likely eligible for loan forgiveness due to disability. So far, about 387,000 people have been identified and the department sent out letters notifying them last month.

After the Wall family learned they could have Andrew’s loans cleared, they spent years working toward that.

Finally, last year, they got the loans cleared, Eric Wall said. But, when they got the tax bill, “they were blind-sided – they had no idea,” he said.

The amount of the loan that is forgiven is generally taxed as regular income, according to the IRS, and the Wall family is working with an accountant to figure out exactly how much that will be for them.

The average amount of student debt at graduation for the class of 2014 was just short of $30,000, according to the latest annual report from the Institute for College Access and Success.

Although the IRS didn’t immediately have available the amount of revenue it collects on student loans forgiven for death or disability, the Department of Education estimated that the total amount of the loans carried by the 387,000 people likely eligible for disability forgiveness are worth $7.7 billion.

65,000 people had federal student loans discharged due to death in 2014.

Gary Stepsis, 68, who lives in Millsboro and sent his three children to college in the 1990s, is among those who is eligible for student loan forgiveness due to disability. He suffers from bi-polar disorder and post traumatic stress disorder, Stepsis said.

“First of all, if they’re going to do discharges, they should not be taxable,” he said.

He supports Coons’ bill, which is working its way through the Senate as the House crafts its own version of the bill – Rep. Peter Roskam, (R) Illinois, introduced a version earlier this month.

Senator Coons’ agriculture and rural development priorities included in annual appropriations bill

WASHINGTON – Today, U.S. Senator Chris Coons (D-Del.), the first Delaware Senator in more than four decades to serve on the critical Appropriations Committee, joined his colleagues on the Committee to approve the annual Agriculture, Rural Development, Food and Drug Administration (FDA), and Related Agencies appropriations bill. This bill passed out of the Appropriations Committee unanimously and is now ready for consideration by the full Senate.

“Delaware plays a vital role in feeding America’s families, and finding ways to support our hardworking farmers and poultry growers is one of my top priorities,” Senator Coons said. “I’m thrilled this bill includes funding for critical programs that will protect Delaware’s poultry growers from disease and catastrophic loss, and help farmers continue their conservation efforts in the Chesapeake Bay. This bill also provides increased support for rural housing to make sure low-income families can secure fair, affordable housing. I’m pleased the committee has worked in a bipartisan way to support these and many related programs.”

A list of Senator Coons’ priorities that were included in spending bills are below:

Support for the poultry industry:
Senator Coons fought for $55 million for avian health programs, which support partnerships with state departments of agriculture, universities, and the poultry industry to monitor poultry flocks and prevent and control the spread of diseases, including avian influenza (AI), which devastated the poultry industry in the west and midwest last year.

Support for conservation programs:
Senator Coons fought for strong funding for several U.S. Department of Agriculture conservation programs, including the Conservation Stewardship Program, the Environmental Quality Incentives Program, and the Regional Conservation Partnership Program. These programs offer crucial tools that help farmers in Delaware and the U.S. protect water quality, conserve soil, enhance wildlife habitat, and protect land. This supports conservation of our nation’s natural resources, helps sustain our hunting and fishing traditions, and helps keep America’s working lands in the hands of farm families for generations to come.

Support for agricultural research:
Senator Coons fought for $375 million for the Agricultural and Food Research Initiative, which provides critical funding for research on food, agriculture, natural resources, clean energy production, rural development, and nutrition.

Support for rural housing:
Senator Coons fought for increased funding for rural housing support, including $900 million for the Rural Housing Insurance Fund/Section 502 direct loans, a USDA program that helps low-income applicants obtain affordable housing in rural areas by providing payment assistance to increase applicants’ repayment ability. Senator Coons also supported $27.5 million for the Mutual and Self-Help Housing Grants Program, another USDA program that provides grants to non-profit organizations, like Habitat for Humanity, who work with low-income families in rural areas to buy, build, and renovate their own affordable homes.

Support for sunscreen innovation:
Senator Coons fought for a testing regimen for sunscreen ingredients to clear out the backlog of sunscreen ingredient applications that are stuck at the FDA. Under the requirement, the FDA will work with stakeholders to develop a benefit-risk testing regimen for sunscreen ingredients that appropriately balances the benefit of additional skin cancer prevention tools versus the risk of skin cancer to Americans.

Support for international food aid:
While Senator Coons is disappointed to see that programs focused on local and regional procurement for emergency food aid were not funded, he looks forward to working with the Committee to identify ways we can improve the efficiency of food aid delivery abroad to make sure our resources reach as many people as possible.

Senators Coons, Ayotte recognize National Emergency Medical Services (EMS) Week

WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Kelly Ayotte (R-N.H.) released the following statement in honor of National Emergency Medical Services (EMS) Week. They recently introduced the National Emergency Medical Services Commemorative Work Act to authorize the creation of a national memorial honoring the commitment and service of EMS professionals.

Each year, across the nation, the 850,000 EMS first responders answer more than 30,000,000 calls to serve 22,000,000 patients in need of immediate, life-saving care. Many of these citizens around the country are alive today because of this selfless commitment. With little regard for their own safety and in the face of all hazards, the men and women of EMS respond across the spectrum of incidents, from a single person’s medical emergency to naturally occurring or man-made disasters.

“Ensuring that our EMS personnel are well trained is not only about delivery of high quality government services, but a matter of life and death,” said Senator Coons. “The commitment to others shown by EMS professionals around the country deserves a memorial that will remind all Americans of the work these men and women do every day. Congress has often recognized the heroic work of our military, police, and firefighting professionals, but the men and women of EMS have also stepped up to assist their communities. Their commitment and service deserves similar recognition, which the National Emergency Medical Services Memorial would provide.”

“EMS professionals are on the front lines every day keeping our communities safe and providing critical care and emergency services to those in need,” said Senator Ayotte. “Their work is too often unrecognized, and I’m honored to thank them, honor their service, and commemorate the sacrifice of those who were lost in the line of duty with this long-overdue memorial.”

“Emergency medical services personnel are on the front lines of public safety and public health in our Nation,” said Chief Larry Tan, Former President of the International Association of EMS Chiefs (IAEMSC) and EMS Chief for New Castle County, Delaware. “It is fitting that we take time to remember and honor those who have made the ultimate sacrifice while responding to the medical needs of their communities.”

“Every day, Americans continue to rely on the enduring ideals of commitment, service and sacrifice embraced by the nation’s emergency medical service providers. These same providers should be able to rely on us as a nation to remember this ongoing commitment and service to our country, and more importantly, the ultimate sacrifice already made by more than 650 members of the nation’s EMS personnel. It is time to remember,” said Katie Orsino, Executive Director of the National EMS Memorial Foundation. “We are very fortunate to have the leadership of Senator Coons and Senator Ayotte associated with this project; the entire EMS community appreciates the introduction of this bill in the US Senate.”

Senator Jeanne Shaheen (D-N.H.) is also a cosponsor of S. 2628. This bill is a companion bill to H.R. 2274, a Bill to Establish a National EMS Memorial.

Senator Coons, colleagues call on President to fulfill commitment to resettle 10,000 Syrian refugees in America

WASHINGTON—U.S. Senator Chris Coons (D-Del.) today joined a group of 27 senators calling on the President to fulfill the Administration’s commitment to resettle at least 10,000 Syrian refugees in the United States this fiscal year. He recently reiterated this commitment, but so far in the first seven months of FY 2016, only 1,736 Syrian refugees have been admitted to the United States.

“We write to express our strong support for resettling Syrian refugees in the United States and to urge your Administration to make every effort to meet your commitment to accept at least 10,000 Syrian refugees in fiscal year 2016,” the senators wrote. “Nonetheless, we are deeply concerned about the slow pace of admissions for Syrian refugees in the first seven months of the fiscal year. During this timeframe only 1,736 Syrian refugees were admitted to the United States. By contrast, more than 6,000 refugees have been admitted from Burma, more than 5,000 refugees have been admitted from both the Democratic Republic of Congo and Somalia, and more than 4,000 refugees have been admitted from Iraq. To fulfill the commitment you announced last year, at least 8,264 Syrian refugees would need to be admitted during the remaining five months of the fiscal year. We would appreciate an update on specific measures your Administration plans to take to fulfill its stated commitment to resettle the additional Syrian refugees by the end of September 2016.”

Full text of the senators’ letter:

May 18, 2016

President Barack Obama
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500

Dear Mr. President:

We write to express our strong support for resettling Syrian refugees in the United States and to urge your Administration to make every effort to meet your commitment to accept at least 10,000 Syrian refugees in fiscal year 2016.

The international community’s response to the Syrian refugee crisis has been uneven. Some countries have welcomed these refugees. For example, Canada admitted 26,859 Syrian refugees between November 4, 2015 and May 1, 2016. Other nations, including ours, can and should do much more. We urge your Administration to devote the necessary resources to expeditiously and safely resettle refugees from Syria.

The Syrian conflict has now entered its sixth year. The war has led to hundreds of thousands of fatalities, more than a million injured, and more than half of Syria’s entire population being displaced. In some areas children have starved to death. A United Nations report last year noted that because there are fewer safe places in Syria with each passing day, even everyday decisions like whether to go out to buy bread can take on life-or-death significance.

The recent bombing of a hospital in Aleppo, which killed many, including children and one of the city’s last pediatricians, is tragically just one of countless examples of horror in this brutal conflict which has led to the worst refugee crisis since World War II. More than 4.8 million Syrians are now registered as refugees, including more than 2.5 million children.

Last September you announced a plan to resettle at least 10,000 Syrian refugees in the United States during fiscal year 2016. We appreciate your recent affirmation that “we can hit those marks before the end of the year.”

Nonetheless, we are deeply concerned about the slow pace of admissions for Syrian refugees in the first seven months of the fiscal year. During this timeframe only 1,736 Syrian refugees were admitted to the United States. By contrast, more than 6,000 refugees have been admitted from Burma, more than 5,000 refugees have been admitted from both the Democratic Republic of Congo and Somalia, and more than 4,000 refugees have been admitted from Iraq. To fulfill the commitment you announced last year, at least 8,264 Syrian refugees would need to be admitted during the remaining five months of the fiscal year. We would appreciate an update on specific measures your Administration plans to take to fulfill its stated commitment to resettle the additional Syrian refugees by the end of September 2016.

Refugees are the most carefully vetted of all travelers to the United States, and the United States’ screening and interview process takes place before a refugee even arrives in America. All applicants are finger printed and subjected to repeated biometric checks, several layers of biographical and background screening, medical checks, and lengthy in-person interviews by specially-trained officers at the Department of Homeland Security who scrutinize the applicant’s explanation of individual circumstances to assess whether the applicant meets statutory requirements to qualify as a refugee and to establish that he or she does not present security concerns to the United States. No refugees are admitted until after successful completion of this stringent security screening regime. Before final acceptance and permission to travel is granted, the applicant must clear security checks by the FBI, the National Counterterrorism Center, the Department of Defense, and the Department of State.

In addition to undergoing the standard rigorous checks completed for all refugees, an “enhanced review” program has been created specifically for the Syrian refugee population. All applications receive a specialized review prior to the interview and are repeatedly checked against law enforcement and intelligence community holdings that are regularly updated and enhanced to ensure they include the most updated and accurate information possible. We fully support your administration’s efforts to continue to strengthen security checks for refugees with the latest technology and information.

In December 2015, the Senate received a letter from 20 Republican and Democratic national-security leaders, including former CIA Director Michael Hayden, former Secretary of State Henry Kissinger, and former CIA Director David Petraeus. They argue that accepting Syrian refugees is in our national interest:

Refugees are victims, not perpetrators, of terrorism. Categorically refusing to take them only feeds the narrative of ISIS that there is a war between Islam and the West, that Muslims are not welcome in the United States and Europe, and that the ISIS caliphate is their true home. We must make clear that the United States rejects this worldview by continuing to offer refuge to the world’s most vulnerable people, regardless of their religion or nationality.

The President of HIAS, the global refugee protection agency of the American Jewish community, noted in congressional testimony last November that while the Syrian refugee crisis is the largest refugee crisis of his lifetime, the United States is resettling far fewer refugees than in 1980, when we resettled over 200,000 Indochinese refugees, or in 1993 and 1994, when our nation resettled well over 110,000 refugees each year. He also provided a reminder of how the United States has successfully overcome the challenge of accepting refugees from nations with which we are in conflict. For example, he observed, between the fall of Saigon and 1997, we rescued 883,317 refugees who fled the Socialist Republic of Vietnam, a country with which we had been in a state of undeclared war that claimed more than 58,000 American lives.

In successfully resettling refugees from conflict zones around the world for decades the United States has not been dissuaded by fear and we should not be now. We strongly support the Administration’s commitment to resettle Syrian refugees and ask you to update us on how your commitment will be met by the end of the fiscal year.

Thank you for your time and consideration.

Sincerely,

Carper, Coons, Peters urge GAO to study how innovative payments providers are regulated

WASHINGTON, D.C. —U.S. Senators Tom Carper (DE), Chris Coons (DE), and Gary Peters (MI) today sent a letter to the U.S. Government Accountability Office (GAO) requesting additional information on innovative payment provider regulations and ongoing efforts at the state and federal levels related to mobile payments.

“The financial services industry has seen significant developments in recent years as technological advancement and adoption have created opportunities for both established firms and new entrants alike,” wrote the Senators. “Innovation related to payments has been particularly pronounced as we have seen job creation driven by new services targeted at improving the efficiency, security, and speed of electronic payments for consumers, merchants, and other businesses. Congress and federal regulators must ensure that laws and regulations related to mobile payments foster innovation while protecting consumers.”

In order to better understand current regulations, the Senators requested that GAO respond to questions that address how federal agencies adopt and promote the use of new payments technologies; laws or regulations that are presenting barriers to innovation related to payments products and increased consumer protection; data on security and fraud incidences; coordinated regulatory efforts; and duplicative regulatory compliance regimes and enforcement proceedings, to name a few.

Click here to read the full text of the letter or see below:

The Honorable Gene Dodaro

Comptroller General of the United States

U.S. Government Accountability Office

441 G Street NW

Washington, DC 20548

Dear Mr. Dodaro:

The financial services industry has seen significant developments in recent years as technological advancement and adoption have created opportunities for both established firms and new entrants alike. Innovation related to payments has been particularly pronounced as we have seen job creation driven by new services targeted at improving the efficiency, security, and speed of electronic payments for consumers, merchants, and other businesses.

The payments industry includes banks, credit unions, credit card networks, payments processors, merchants, payment network operators, telecommunications companies and technology innovators, among others. These companies are overseen by a disparate group of regulators including federal bank regulators, state regulators, and other federal agencies.

Congress and federal regulators must ensure that laws and regulations related to mobile payments foster innovation while protecting consumers. To this end, we are seeking to better understand current regulations and ongoing efforts at the state and federal levels related to mobile payments. In particular, we request that GAO respond to the following questions:

How have federal agencies adopted and promoted the use of new payments technologies, such as the use of electronic payments for Supplemental Nutrition Assistance Program (SNAP) benefits at farmers markets or the Federal Election Commission’s approval of bitcoin campaign contributions?
Are there laws or regulations that are presenting barriers to innovation related to payments products across all market participants?
Are there laws or regulations that are presenting barriers to increased consumer protection related to payments products across all market participants?
In what ways are new payment methods and technologies, including online and mobile, driving increased security?
What data is collected by government regulators related to fraud incidence?
A May 2014 report by the Federal Reserve Bank of Boston’s Director of Payment Strategies^[1]provides an overview of mobile payments industry regulators including: the Federal Reserve Board of Governors; Federal Deposit Insurance Corporation; Office of the Comptroller of the Currency; Consumer Financial Protection Bureau; National Credit Union Administration; Conference of State Bank Supervisors; U.S. Department of Treasury’s Office of Consumer Policy; U.S. Department of Treasury’s Financial Crimes Enforcement Network; and the Federal Trade Commission. How and to what extent have these entities coordinated regulatory efforts with each other? With state governments? Are there other regulators that have jurisdiction in some form over mobile payments?
To what extent are providers of payments technology facing duplicative regulatory compliance regimes and enforcement proceedings?
To what extent are existing/traditional companies subject to additional regulations compared to new entrants?
What strategies, if any, do the relevant agencies and regulators have to address regulatory duplication, fragmentation, and current barriers to coordination?

Thank you for your timely attention to this request.

[1]Susan Pandy, “Update on the U.S. Regulatory Landscape for Mobile Payments,” Federal Reserve Bank of Boston, August 18, 2014.

Bipartisan ‘Manufacturing Universities’ legislation passes Senate Committee

WASHINGTON – Yesterday, the U.S. Senate Armed Services Committee passed the 2017 National Defense Authorization Act, which included important bipartisan legislation that will help U.S. universities strengthen their engineering programs to meet the demands of the modern manufacturing industry. Manufacturing Universities authorizes the Defense Department to support industry-relevant, manufacturing-focused, engineering training at U.S. universities. Institutions would be selected through a competitive grant-based process and would be required to better align their educational offerings with the needs of modern U.S. manufacturers. The legislation, led by U.S. Senators Chris Coons (D-Del.), Kelly Ayotte (R-N.H.), Kirsten Gillibrand (D-N.Y.), Lindsey Graham (R-S.C.), and Tammy Baldwin (D-Wis.) now heads to the full Senate for consideration.

“I’m thrilled the Senate Armed Services Committee came together in a bipartisan way to advance our legislation that will help students across the country acquire the skills they need for jobs in today’s advanced manufacturing industries,” said Senator Coons. “Manufacturing has transformed over the years but job training has failed to keep up, leaving too many positions unfilled. We need to better equip Delawareans and students across the country for today’s advanced manufacturing jobs, and Manufacturing Universities will do just that. It will ensure that our country is offering higher education that meets the needs of 21^st century manufacturing. I urge the Senate to pass this legislation as soon as possible to give young people the skills necessary to excel in this growing field.”

“Advanced manufacturing is a growing and thriving industry in New Hampshire, and we need to take steps to strengthen our workforce to meet the demand for highly skilled workers in this sector,” said Senator Ayotte. “I’m pleased that the Committee adopted our amendment today. I’ll continue to push for its full passage so we can help our students acquire the skills they need to meet the demand for the good-paying, manufacturing job opportunities in New Hampshire, while also giving our universities more tools to spur innovation and use cutting-edge technology to grow this vibrant sector of our economy.”

“As the demand for a highly skilled workforce continues to grow, I’m proud to have worked across party lines to support the Manufacturing Universities Act,” said Senator Baldwin. “This bipartisan legislation will strengthen engineering programs and help ensure that our universities offer courses that can better prepare students for our 21st century advanced manufacturing economy. It will also give students the tools they need to carry on Wisconsin’s tradition of making things, and move our economy forward. It is my hope that the Senate will take action on this legislation and invest in our Made in America economy.”

“The Manufacturing Universities legislation would give our universities access to new resources that can help them prepare more engineers, more product designers, more innovators, and more men and women to drive our economy forward,” said Senator Gillibrand. “No job should go unfilled and no company’s expansion should ever be inhibited because there aren’t enough trained workers ready to work. I’m pleased this bill was included in the NDAA, and I look forward to fighting for its final passage on the Senate floor.”

“This is an incredibly important issue for our states’ institutions of higher education and manufacturing industries,” said Senator Graham. “This amendment will foster entrepreneurship and innovation by prioritizing advanced manufacturing, research, and industry collaboration. I look forward to working on additional, innovative ways to ensure our manufacturing sector thrives and maintains its international competitiveness in the years to come.”

Manufacturing Universities would establish a program within the Department of Defense charged with designating schools as ‘Manufacturing Universities.’ Designated schools would receive federal grant funding to meet specific goals, including focusing engineering programs on development of industry-relevant advanced manufacturing skills, building new partnerships with manufacturing firms, growing hands-on training opportunities for students, and fostering manufacturing entrepreneurship. The program would be run by the Secretary of Defense, in consultation with other federal agencies such as the National Science Foundation, The National Institute of Standards and Technology, The Department of Energy, and the Department of Education.

The original bipartisan standalone legislation S. 771 was endorsed by Association of American Universities, the Association of Public and Land-grant Universities, The Information Technology and Innovation Foundation, the Precision Metalforming Association, the National Tooling & Machining Association, the University of Delaware, Delaware State University, Clemson University, University of South Carolina, University of Pennsylvania, Penn State University, Temple University, Drexel University, the University of Missouri System, the University of Illinois, the University of California, Davis, the University of California, Irvine, Boston University, the University of Rochester, the Rochester Institute of Technology, the State University of New York (SUNY) System, Kent State University, the University of Wisconsin, University of Wisconsin-Madison, University of Wisconsin-Milwaukee, the University of Connecticut, Rensselaer Polytechnic Institute, Clarkson University, The Ohio State University, Dow, DuPont, and Siemens.

Senators Carper, Coons Hail Passage of Energy and Water Infrastructure Funding Bill

WASHINGTON – U.S. Senators Tom Carper and Chris Coons (both D-Del.) today applauded Senate passage of the Energy and Water Appropriations bill. This annual spending bill for the country’s energy and water programs contains a critical provision that will help maintain and strengthen investments to protect beaches and coastal areas, including Delaware’s shorelines.

“The First State’s five-star beaches are not only natural treasures that drive our local economy, they’re also a vital layer of protection for our coastal communities when severe weather strikes, like Superstorm Sandy and this winter’s historic nor’easter,” Senator Carper said. “The Energy and Water Appropriations bill approved by the Senate today includes robust funding for shore restoration so that our beaches can continue to receive the maintenance they need to mitigate against future storms and flooding.”

“When I was elected to the Senate in 2010, I made it a priority to secure a seat on the Appropriations Committee so that I could fight for Delaware priorities like beach protection and replenishment in our federal spending bills,” Senator Coons said. “This appropriations bill includes important federal funds to maintain and protect Delaware’s beaches, and I’m going to continue working with Senator Carper to ensure the Corps prioritizes areas that are most in need of restoration.”

The legislation provides $50 million for shore protection, in addition to funding for many other navigation and environmental restoration activities. Through an amendment proposed by Senators Carper and Coons, those funds may be used for areas that are most in need, whether due to extreme weather events, or like in Delaware, because the regularly scheduled Army Corps of engineers beach replenishment has been delayed.

Bipartisan provision from Senators Coons, Gardner, and Gillibrand to support startup businesses passes Committee

WASHINGTON – Yesterday, the U.S. Senate Small Business Committee passed bipartisan legislation to allow awardees of federal research and development grants to use a greater portion of their funding on business and technical services needed to support their startup business. The legislation, led by U.S. Senators Chris Coons (D-Del.), Cory Gardner (R-Colo.), and Kirsten Gillibrand (D-N.Y.), now heads to the full Senate for consideration.

The bill authorizes Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program Phase II awardees to use up to $35,000 of their awards for activities that are critical to building businesses, including services such as market validation, intellectual property protection, market research, and business model development. The bill also allows awardees to use the funds to develop regulatory and manufacturing plans and gives them greater flexibility to select local vendors for such services. Currently, the SBIR/STTR programs offers limited financial support to awardees for these critical commercialization activities.

“I’m thrilled the committee came together to pass our legislation to support the startup businesses that are the engine of job creation in Delaware and across the country,” said Senator Coons. “This bill helps startup companies hit the ground running by providing entrepreneurs the support and flexibility they need to translate their cutting-edge research into marketable products and services.”

“The entrepreneurial spirit of Americans is part of what makes this country so unique. Startups will grow our economy and that’s why we must do everything we can to support them and the jobs they create,” said Gardner. “I’m pleased the Small Business Committee recognizes the value of startups and the need to make it easier for them to innovate, develop, and succeed.”

“This is an important step for many researchers and entrepreneurs in New York and around the country who are looking to bring their innovations to market by creating new businesses but don’t have access to the resources or services they need to do so,” said Senator Gillibrand. “Now that this bill has passed out of committee, it is one step closer to becoming law and giving our startup community the access it needs to a vital source of funding to ensure new technologies are made here in America, creating more jobs and growing our economy.”

President Obama signs Sen. Coons’ bill into law in Oval Office ceremony

WASHINGTON – Today, President Barack Obama hosted U.S. Senator Chris Coons (D-Del.) at the White House for an Oval Office ceremony to sign into law the Defend Trade Secrets Act (DTSA), legislation authored by Senator Coons and U.S. .Senator Orrin Hatch (R-Utah) to help businesses in Delaware and across the country protect their valuable trade secrets. The legislation, which passed the House on April 27 and passed unanimously in the Senate on April 4, has received widespread bipartisan and bicameral support.

Senators Coons introduced the Defend Trade Secrets Act after witnessing several American companies, including the Delaware-based companies Adesis and DuPont, fall victim to trade secret theft. Many companies who have their trade secrets stolen are forced to lay off employees and suffer from a significant decrease in growth and innovation. Trade secrets—such as customer lists, formulas, and manufacturing processes—are an essential form of intellectual property, but they are the only form of U.S. intellectual property that businesses cannot take federal legal action to protect in the event of misuse or theft. Currently, trade secret owners must rely on state courts or federal prosecutors to protect their rights.

“I’m thrilled that despite the gridlock in Congress, we’re able to celebrate today a real, bipartisan achievement that will help American businesses grow, innovate, and protect their hard earned intellectual property,” said Senator Coons. “Delawareans sent me to Washington to get things done, and I’m so proud to join President Obama and Senator Hatch in the Oval Office today to show the country and our colleagues in Congress that when we set aside political differences and work together, we can do so much to help the American people and our economy. This legislation is going to make a real difference for businesses in Delaware and help them invest in research and development knowing they can take action if they fall victim to trade secret theft. Having worked for an advanced materials manufacturing company in Delaware which relied heavily on its trade secrets, I know companies will feel a sense of relief knowing this law is in place.”

“Adesis is grateful to Senator Coons for his work on the trade secrets legislation,” said Andrew Cottone, President of Chemistry for Delaware-based Adesis. “Twelve years ago we were the victims of such theft. We witnessed firsthand the job loss, financial loss and technical destruction these actions can have on large and small American companies alike. Adesis is hopeful that with the help of Senators Coons and this legislation, no other companies will have to relive our experiences.”

The Defend Trade Secrets Act:

Creates a uniform federal standard for trade secret misappropriation. A company can craft one set of nondisclosure policies secure in the knowledge that its trade secrets will be protected by federal law.
Provides for injunctions and damages, including a narrow, but powerful, ex parte seizure authority when it is needed to prevent the disclosure or further dissemination of a stolen trade secret. The bill also authorizes appropriate final monetary and injunctive relief to account for the economic harm to American companies whose trade secrets are stolen, while also safeguarding the freedom of employees to move from one job to another.
Is consistent with the remedies provided for other forms of intellectual property, such as patents, trademarks and copyrights, which are all covered by federal civil law.

The bill is supported by ACTI, Adesis, Adobe, AdvaMed, the Alliance of Automobile Manufacturers, AIPLA, the Association of Global Automakers, Inc., Biotechnology Industry Organization (BIO), The Boeing Company, Boston Scientific, BSA | The Software Alliance (BSA), Caterpillar Inc., Corning Incorporated, The Dow Chemical Company, DuPont, Eli Lilly and Company, Exxon Mobil Corporation, Fiber to the Home Council Americas, Ford Motor Company, General Electric, Honda, IBM, Illinois Tool Works Inc., Information Technology Industry Council (ITI), The Intellectual Property Owners Association (IPO), International Fragrance Association, North America, Internet Commerce Coalition (ICC), Johnson & Johnson, Medical Device Manufacturers Association (MDMA), Medtronic, Michelin, Micron, Microsoft, Monsanto, National Alliance for Jobs and Innovation (NAJI), National Association of Manufacturers (NAM), National Foreign Trade Council, New England Council, NIKE, Pfizer, Philips Light, The Procter & Gamble Company, Royal Philips, SAS, Semiconductor Industry Association (SIA), Siemens Corporation, Software & Information Industry Association (SIIA), Telecommunications Industry Association (TIA), Texas Association of Business, Texas Association of Manufacturers, U.S. Chamber of Commerce, and United Technologies Corporation.

Delaware Delegation backs U.S. challenge to China’s unfair taxes on poultry from Delaware and other states

WASHINGTON – Today, U.S. Senators Tom Carper and Chris Coons (both D-Del.) and U.S. Representative John Carney (D-Del.) applauded an announcement from U.S. Trade Representative Michael Froman that the United States is mounting a challenge to China at the World Trade Organization (WTO) because of the Chinese Government’s extremely high tariffs on American poultry products, which act as significant barriers to American poultry exports to China. The WTO has already stated that these tariffs from China are a breach of its WTO obligations.

This announcement marks the 12^th complaint brought by the Obama Administration against China at the WTO, and the United States is firmly committed to ensuring that China lives up to its WTO obligations. This challenge will help address barriers to the Chinese market for U.S. farmers, including those in Delaware’s poultry industry.

“Delaware’s poultry farmers and producers are the strongest engines in our local economy and we know they have great potential to do even more, but when they’re shut out of international markets, that potential goes untapped,” said Senator Carper. “China’s hefty tax on American poultry imports is unfair and, while I’m still hopeful that China will right this wrong on its own, we must be prudent and pursue action by the World Trade Organization. I thank Ambassador Froman and his team for their continued work to ensure the global community holds China accountable for its unfair trade practices.”

“The economic health of America’s agricultural sector, including Delaware’s poultry industry, is directly tied to its access to foreign markets,” said Senator Coons, co-founder of the Senate Chicken Caucus. “That’s why it is critical for the United States to fight unfair protectionist policies of some of the world’s biggest markets like China. I applaud the Obama Administration for taking action today to challenge China’s continued failure to meet WTO standards. Today’s announcement sends a clear message that the United States will continue to hold China’s feet to the fire until it plays by the rules and opens up its market to our poultry. I will continue to fight to make sure poultry farmers in Delaware and across the country have access to markets around the world.”

“The Administration’s actions today are crucial to Delaware’s poultry producers,” said Congressman Carney. “China’s current regulations are unfair and burdensome, cutting out a huge potential market for Delaware farmers. In today’s international economy, we need to ensure everyone’s playing by the same rules. I want to thank Ambassador Froman for bringing this matter to the World Trade Organization and for continuing to promote a level playing field for America’s farmers.”

Background:

China has been imposing anti-dumping and countervailing duties on U.S. chicken since 2010. The U.S. has challenged China’s duties with the WTO numerous times.

On September 25, 2013, the WTO adopted the panel report in the China – Broiler Products dispute, which found in favor of the United States on over a dozen claims asserting that China’s duties breached WTO rules. China subsequently undertook a re-investigation and, in July 2014, issued a redetermination that purports additional rationales justify continuing its duties on U.S. broiler products. China has asserted that this redetermination has brought China into compliance with the findings in the WTO Panel Report. Since then, the United States has reviewed China’s redetermination and engaged closely with U.S. stakeholders on next steps. On the basis of this intensive review, the United States considers that the reinvestigation process and the redetermination breach WTO rules and that accordingly, China has failed to bring its measures into compliance with WTO rules.

In today’s consultation request, the United States is making claims under numerous provisions of the WTO Antidumping Agreement and the WTO Subsidies and Countervailing Measures Agreement. Those claims include China’s failure to properly calculate costs of production for a U.S. producer, a failure to conduct a transparent reinvestigation, and various failures with respect to China’s finding that the Chinese industry has been injured on account of U.S. exports.

The United States is the only WTO Member to challenge a claim of compliance by China following WTO findings that China was breaching WTO rules. This is the second time that the United States has challenged China’s failure to comply in a WTO dispute. In the first instance, the United States prevailed in its claim that China’s continued imposition of extra duties on specialty steel products was inconsistent with WTO rules. Following that challenge, China terminated the extra duties.

This challenge to China’s non-compliance with respect to duties levied on chicken broiler products demonstrates once again the United States’ commitment to ensuring that China strictly adheres to the WTO’s rules of the road.

The U.S. poultry industry is the world’s largest producer and its second-largest exporter of poultry meat. Nearly 18 percent of U.S. poultry production is exported. The U.S. poultry industry employs 350,000 workers and comprises 50,000 family farms.

Related Issues